Business : Riding on robust Q1 results, Infosys raises FY23 revenue outlook
Bengaluru, July 24 : Registering a 21.4 per cent year-on-year growth, leading IT player Infosys reported a robust performance for Q1 of FY 2022-23. The company also reported a sequential growth of 5.5 per cent in constant currency.
Year-on-year, the company reported double-digit growth across all business segments in constant currency terms.
The IT giant reported a consolidated net profit of Rs 5,360 crore for the quarter ended June 30, up 3.2 per cent from Rs 5,195 crore reported in the correspoding quarter of the previous year.
Infosys’ consolidated revenue stood at Rs 34,470 crore, up 23.6 per cent from Rs 27,896 crore reported in the year-ago period.
“Our strong overall performance in Q1 amid an uncertain economic environment is a testament to our innate resilience as an organisation, our industry-leading digital capabilities and continued client-relevance. We continue to gain market share and see a significant pipeline driven by our Cobalt cloud capabilities and differentiated digital value proposition,” said Salil Parekh, CEO and MD, Infosys.
Digital accounted for 61 per cent of overall revenues, growing at 37.5 per cent in constant currency.
Net hiring was strong at 21,171 while operating margin for the quarter was 20.1 per cent, with free cashflow conversion at 95.2 per cent of net profit.
“We are investing in rapid talent expansion while ensuring rewarding careers for our employees to better serve the evolving market opportunities. This has resulted in a strong performance in Q1 and increase in FY23 revenue guidance to 14-16 per cent,” Parekh added.
“We are fuelling the strong growth momentum with strategic investments in talent through hiring and competitive compensation revisions. While this will impact margins in the immediate term, it is expected to reduce attrition levels and position us well for future growth. We continue to optimise various cost levers to drive efficiency in operations,” said Nilanjan Roy, Chief Financial Officer, Infosys.
“Continued high focus on cash led to strong FCF to net profit conversion at 95.2 per cent and improvement in ROE to 31 per cent,” he added.